Kentucky to shift athletic dept. to private LLC company in historic move

Kentucky is preparing to shift its entire athletic department into a limited liability company, a private structure that will allow it to raise more money as college sports awaits the House decision.

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Kentucky is about to make college athletics history moving into an era of revenue-sharing with student-athletes.

Members of the University of Kentucky Board of Trustees approved a proposal to transfer its entire athletic department into a limited liability company (LLC) called Champions Blue, LLC.

The decision represents a major shift in how university athletics will be organized going forward as colleges look to adjust to the pending decision from the U.S. District Court that could completely lift restrictions on schools sharing media rights revenue with players.

Kentucky’s move is believed to be the first of its kind by any major university in the country.

By shifting its actual athletic department into a private, for-profit company structure, Kentucky will be able to explore new ways of raising money, including public-private partnerships, to handle expenses as college football and other sports prepare to share revenue with athletes.

“We believe this is an innovative approach, a new structure and governance model that thoughtfully contemplates how we strengthen Athletics, protect and promote the University, and open up new opportunities for growth,” Kentucky president Eli Capulouto said.

“It’s a foundation and model that we are calling Champions Blue. Athletics and its success have always been the result of an incredible and productive partnership with campus. It will continue to be in the future, if we seize the opportunities in front of us to meet the challenges that lie ahead.”

Kentucky is one of the more financially lucrative athletic departments in the country, generating an estimated $160 million in revenue, according to USA Today’s database.

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